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Gold prices hold above the key support of $1,160


Nov. 20 2020, Updated 4:53 p.m. ET

Gold prices continue the down trend

Gold April futures contracts are trading in a downward trending channel. Gold prices settled just above the key support on March 9, 2015. The blood bath of precious metals was on hold on Monday even though the dollar increased.

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Pivot points for gold

Bearish sentiments are dominating the global bullion market. The important support for gold is at $1,160 per ounce. Prices hit this mark in November 2014. Gold could only trend higher if there are bullish news triggers. Bullish traders could see resistance at $1,180 per ounce. Prices hit this mark in early February 2015.

If we look at the gold chart, it suggests that gold will make lower highs and lower lows. It’s expected to trade between levels of $1,160 and $1,200 per ounce. Trading houses suggest that gold prices could trade lower due to the strong dollar.

The RSI (relative strength index) and MACD (moving average convergence divergence) are giving mixed indications about the price direction. Given the recently volatility of gold prices, traders should be watchful.

Lower gold prices impact gold stocks like Yamana Gold (AUY), Goldcorp (GG), and Barrick Gold (ABX). Goldcorp and Barrick Gold stocks account for 10.19% and 8.64% of the VanEck Vectors Gold Miners ETF (GDX), respectively. Lower gold prices also affect gold-focused ETFs like the iShares Gold Trust (IAU).

For the latest updates on gold, visit Market Realist’s Gold ETFs page.


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